Income Tax Returns or ITR is a form used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. It is mandatory for individuals who earn a certain amount of money have to File IT Returns. Firms or companies, Hindu Undivided Families (HUFs), and self-employed or salaried individuals must file ITR to the Income Tax Department of India.
Note: You can now file your taxes through the New income tax portal. The new portal comes with a plethora of features and is designed to ease the tax filing process.
Table of Contents
What is ITR filing?
ITR filing is the process by which taxpayer has to file a report of his total income earned on financial year. Through Income Tax Department official portal individual can complete their filing of returns. It has notified with seven various forms - ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.
In an attempt to offer relief to all the taxpayers, the Central Board of Direct Taxes (CBDT) had extended the deadline for filing ITR for FY 2020-21, ie.; (AY 2021-22). The new deadline is 31 December 2021. The Income Tax department has also extended many other tax compliance deadlines. The extension of these due dates and the tax filing due date for taxpayers is crucial as the pandemic is raging through many states in India.
- Audit Assessees/companies have time till 15 March 2022 for filing the income tax return. The earlier deadline was 30 November 2021.
- The due date of filing belated and revised return of income is 31 March 2022. The earlier date was 31 January 2022.
- The due date of furnishing Tax Audit Report has been extended to 15 February 2022.
- The due date of Transfer Pricing Certificate is now 15 January 2022.
- The due date for TDS Statement for fourth quarter of FY 2020-21 was 30 June 2021.
- The last date for issuing Form 16 was 31 July 2021.
Why should you file ITR?
It is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:
- Individuals who fall within the respective tax slabs.
- If it’s a Company or Firm, irrespective of the profit or loss made in a financial year.
- If a tax refund needs to be claimed.
- If a loss under a head of income needs to be carried forward.
- If being a resident of India, one has an asset or financial interest in any entity located outside India.
- If being a resident of India, one is a signing authority in a foreign account.
- If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
- If one is applying for a loan or a visa.
- If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.
With the implementation of efiling of Income Tax Returns, the following cases will require an e-filing Income Tax :
- In case a refund is required
- In case the gross total annual income exceeds Rs.5 lakh
- In case an income tax refund is required
- ITR 3, 4, 5, 6, 7 have to be mandatorily e-filed
How to Download ITR Form?
Here is a step-by-step procedure to download the ITR forms from Income Tax Department of India's website
- Step 1: Visit the official income tax department (ITD) website at https://www.incometaxindia.gov.in
- Step 2: From the menu bar on the home page, click on the ‘Forms/Downloads’ option and navigate to the ‘Income Tax Returns’ menu.
- Step 3: You will be redirected to a new webpage wherein you can find a list of all the ITR forms. Click on the ‘PDF’ option next to the respective forms to download them.
Which ITR form to file?
Depending on the type of income that is generated by the taxpayer, the form that must be submitted will be different. The various forms can be downloaded from the official website of the income tax department https://www.incometaxindia.gov.in/pages/downloads/income-tax-return.aspx The different types of ITR forms that are available are mentioned below:
|ITR Form Name||Applicability|
|ITR-1 or Sahaj||The form must be used by individuals who make an annual income of less than Rs.50 lakh via pension or salary and from only one house property.|
|ITR-2||The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties, and from foreign sources. However, the income of the individual must be more than Rs.50 lakh.|
|ITR-3||The form must be used by individuals who run a proprietorship or are professionals in India.|
|ITR-4 or Sugam||Individuals who are under the presumptive taxation scheme must use this form. In order for individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.|
|ITR-5||In order for association and body of individuals, Limited Liability Partnerships (LLPs), and partnership firms to report their income and tax computation, this form must be used.|
|ITR-6||Companies that are registered in India must use this form.|
|ITR-7||In case entities are claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.|
Documents required to fill ITR
For Filing IT returns Online, the following documents are needed:
- Pan card
- Form 26AS
- Form 16A, 16B, 16C
- Salary Pay slips
- Bank statements
- Interest certificates
- TDS certificate
- Proof of tax saving investments
How to file ITR for AY 2021-22
You can file the ITR by visiting the official website of the Income Tax Department. However, the registration process must be completed before you can file the IT Return online. The Income Tax Department (ITD) of the Government of India has recently updated the online portal for e-filing of income tax returns. The updated portal makes the e-filing process even easier and can be filed by following the steps mentioned below:
- Step 1: On the basis of the provisions prescribed by the Income Tax rules, you can find out your income tax liability.
- Step 2: You can refer to your Form 26AS to get a summary of your TDS payment for the different quarters of the assessment year.
- Step 3: On the basis of the eligibility criteria provided by the Income Tax Department (ITD), you will have to determine the category that you will fall under.
- Step 4: Visit the official e-filing portal of the income tax department at e-Filing Home Page, Income Tax Department, Government of India (https://eportal.incometax.gov.in/iec/foservices/#/login).
- Step 5: In case you are a new user, you can register yourself using the ‘Register’ button.
- Step 6: If you have already registered yourself on the portal previously, you can just click on the ‘Login’ button.
- Step 7: Click on the ‘File Income Tax Return’ option under the ‘e-file’ tab.
- Step 8: From the list provided on the website, you have to choose the category that you fall under – individual, Hindu Undivided Family (HUF), and so on.
- Step 9: Choose the suitable ITR Form that is applicable to you.
- Step 10: You will be required to enter the details of your bank account as well. If you have already provided the same previously, you will be required to pre-validate the details.
- Step 11: After this, you will be redirected to a new web page where you will be able to check the pre-filled details of your ITR. Check the details and make changes if required. Once you are sure that all the details provided in the form are correct, confirm the same and validate it.
- Step 12: Once the process is complete, verify the returns and send a hard copy of the same to the Income Tax Department.
Is it possible to file IT Returns without Form 16?
Yes, it is possible to file Income Tax Returns (ITR) without Form 16.
Steps to file ITR without Form 16
These are the steps to file ITR if you don't have Form 16:
- Step 1: Determine how much income you earned from all your sources combined which would include your salary or pension, rent, capital gain on the sales of a capital asset, interest from your fixed deposits and bank accounts, etc.
- Step 2: Calculate your Tax Deducted at Source (TDS) which you can do with the help of Form 26AS which can be downloaded from the website of TRACES.
- Step 3: Calculate your TDS on income. If you have House Rent Allowance (HRA) in your salary breakup, you can deduction on HRA for which you have to submit your rental receipts to your organization's payroll department. If this has not been submitted in advance, you can claim it while filing your returns too.
- Step 4: Calculate your total income for the entire financial year for which you are filing your tax returns. The total income is the sum of all the income received and the TDS that has been deducted on that income.
- Step 5: Claim the deductions that you are eligible for on your investments and payments. This should be done in the computation of your total taxable income. For Provident Fund deductions, you can only claim deduction for your own contribution and not for your employer's.
- Step 6: Calculate your total taxable income by deducting the total deductions that can be claimed from the sum total of your income earned.
- Step 7: Calculate your tax liability for the year by applying the tax slab rates which are applicable to you.
- Step 8: Determine the tax payable by you. If the TDS deducted on your income is less than your tax liability as calculated in Step 6, the tax to be paid by you is the difference amount. If the TDS deducted exceeds your tax liability, then you have paid excess tax for which you can claim a refund while filing your IT returns.
- Step 9: Now you can file your IT returns
Penalty for Late Filing of ITR
In case the returns are not filed by the due date, huge penalties are levied on the taxpayer. Apart from penalties, there could be other inconveniences and consequences that the individual would face in case the returns are not filed. Depending on when the returns are filed after the due date, individuals could face penalties between Rs.1,000 and Rs.10,000.
Given below is the penalties that are levied for a delay in ITR filing for FY 2020-21:
|Due Date of ITR Filing||Penalty for Income below Rs.5 lakh||Penalty for Income above Rs.5 lakh|
|Before 31 July||Nil||Nil|
|From 1 September to 31 December||Rs.1,000||Rs.5,000|
|From 1 January to 31 March||Rs.1,000||Rs.10,000|
Apart from penalties, in case taxpayers are eligible to receive a refund, there will be a delay in case the ITR is filed late. Taxpayers will also have to pay a 1% interest on the pending amount in case the returns are not filed on time.
FAQs on Income Tax Returns
- Can I file the ITR myself?
- Is it mandatory to file the ITR?
- Are there any penalties levied in case the ITR is not filed?
- Is it mandatory for salaried employees to file the ITR?
- If I have already paid advance taxes and have no dues or refunds, can I skip filing of income tax return?
- Is an ITR useful to me in daily life?
- Can I File Income Tax Return after Due Date?
- How to Check the Status of Income Tax Return?
- What is Income Tax Return Notice?
Yes, you can file the ITR by visiting the official website of the Income Tax Department.
In case you fall under the tax bracket that is provided by the government, it is mandatory to file the ITR.
Yes, penalties are levied in case the ITR is not filed.
Salaried employees who fall under the tax bracket must file the ITR.
No, it is mandatory to file your ITR. The government get a complete record of how your income is distributed with the help of the ITR.
Yes, it is useful to file your tax returns. In case you wish to apply for a loan, the ITR may be considered as a mandatory document that must be submitted.
Yes, you can file your Income Tax Return after the due date. However, a penalty will be levied in case the ITR is filed after the due date.
The status of the Income Tax Return can be checked on the official website of the Income Tax Department of India. The status can be checked with the help of your Permanent Account Number and password.
If you do not file your Income Tax Return in an Assessment Year, then you may receive a notice from the Income Tax (IT) Department. The IT Department keeps a track on financial transactions and activities of individuals who are identified as non-filers. If there is a discrepancy with the amount of tax that you have declared in your ITR, then you may receive a notice from the IT Department. You may also receive a notice if the department wants to review any documents related to the ITR that you have filed.